Electronic Arts announced preliminary financial results for its fiscal first quarter ended June 30, 2007. Net revenue for the quarter was $395 million, down four percent as compared with $413 million for the prior year. Beginning this quarter, EA no longer charges for hosting services related to certain online-enabled packaged goods games. As a result, the Company recognizes revenue from the sale of these games over the estimated hosting service period. This change resulted in a $36 million sequential increase in deferred net revenue as of June 30, 2007, which will be recognized in future periods.

Sales were driven by Harry Potter and the Order of the Phoenix, Command & Conquer 3 Tiberium Wars , The Sims 2 Pets, Need for Speed Carbon and The Sims 2. Gross profit for the quarter was $229 million, down seven percent year-over-year. Net loss for the quarter was $132 million as compared with a net loss of $81 million for the prior year. Diluted loss per share was $0.42 as compared with $0.26 for the prior year.

Looking ahead, EA plans to launch 10 new properties this fiscal year including Boogie, EA Playground, Army of Two, SKATE, Warhammer Online, The Simpsons Game, Smarty Pants, a Wii title jointly developed with Steven Spielberg, Rock Band and Crysis.